Hi, I think you are at the verge of buying new switches and you want to decide if you want to pay the price and buy a layer 3 switch . First two layers in OSI Model ( Layer 1 & 2 ) are the Physical layer and the Data Link layer . As their name implies they work with NICs, cables , connectors and mac addresses and DO NOT KNOW ( ARE NOT AWARE OF ) IP addresses . So layer two switches are just busy with transferring the stuff given to the from upper layers ( layer 3 - Network Layer ) to the mac addresses . Layer 3 switches are at the Network Layer and are aware of the IP addresses . So applications that work with or can manipulate IP addresses can be "added" to the capabilities of the switch to be implemented on the switch . These applications are protocol based capablities in line with specific standart that YOU SEE as a list of features of a layer 3 switch . Whether to buy an intelligent switch depends on your enterprise size and cost/performance considerations of your bosses.

What also appears to be overlooked is that a layer 3 switch performs the function of a router-on-a-stick in a VLAN environment. As such, the switch can route information between different VLANS. The bennefits is the reduction on hops required, speed and less equipment to purchase.

Layer 2 Switches basically works at datalink layers and here are some of its features

a)Layer 2 Switches forwards the frames using MAC address.b)MAC address table is maintained and updated preodically for associated switch ports.c)Broadcast & multicast frames are flooded out to all the ports except the port from which it originated.and is primarily used for workgroup connctivity and network segmentations.

Layer 3 Switches basically works with Network layer with layer 2 capabilities,some of its features area) Packets are forwarded at layer 3 just as routers,b) packets r switched using specialized hardware ASICsc)packets can be forwarded with security control & QOS (quality of service) using Layer 3 address information.Layer 3 Swicthes are designed to examine & forward the packets in high speed LAN environment.

Layer 2 Switches basically works at datalink layers and here are some of its features

a)Layer 2 Switches forwards the frames using MAC address.b)MAC address table is maintained and updated preodically for associated switch ports.c)Broadcast & multicast frames are flooded out to all the ports except the port from which it originated.and is primarily used for workgroup connctivity and network segmentations.

Layer 3 Switches basically works with Network layer with layer 2 capabilities,some of its features area) Packets are forwarded at layer 3 just as routers,b) packets r switched using specialized hardware ASICsc)packets can be forwarded with security control & QOS (quality of service) using Layer 3 address information.Layer 3 Swicthes are designed to examine & forward the packets in high speed LAN environment.

Layer 2 Switches basically works at datalink layers and here are some of its features

a)Layer 2 Switches forwards the frames using MAC address.b)MAC address table is maintained and updated preodically for associated switch ports.c)Broadcast & multicast frames are flooded out to all the ports except the port from which it originated.and is primarily used for workgroup connctivity and network segmentations.

Layer 3 Switches basically works with Network layer with layer 2 capabilities,some of its features area) Packets are forwarded at layer 3 just as routers,b) packets r switched using specialized hardware ASICsc)packets can be forwarded with security control & QOS (quality of service) using Layer 3 address information.Layer 3 Swicthes are designed to examine & forward the packets in high speed LAN environment.

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